The company officially confirmed the news that had only been rumored earlier this year when word leaked it was looking for people to work in the new studio's production offices.

So far, the company is just fielding ideas and treatments to take to the next step. Even though its plans include releasing shows on the web through its video service, the studio's chief, Roy Price, said the plan was to make them look, feel and sound like "real" TV shows.

Amazon is also way ahead of the TV production game, compared to other online properties that have tried the same thing. It has already cemented a solid relationship with TV production companies and studios from all the money it currently makes distributing their shows, movies and DVDs.

It's also not the first time that Amazon tried to start its own production hub with its own original content. Price said Amazon has talked about doing this for a long time. The studio has already made a serious effort to work with Warner Bros. to produce feature length films and it has a publishing wing that has produced several books exclusively for the company's shopping site.